March 28, 2011 12:01:45 am
Lakshmi Mittal,the chairman and CEO of the worlds largest steel-maker ArcelorMittal,earned a 11 per cent hike in his base salary in 2010,after suffering pay cuts in the previous two consecutive years.
Mittal earned a base salary of $1.65 million in 2010,compared to $1.49 million in the previous year,according to ArcelorMittals annual report.
In the previous two years,the company had given a pay cut to its entire board,including Mittal,as the firm lost money amid slumping steel sales.
In addition,Mittals daughter,Vanisha Mittal Bhatia,received a base salary of $172,000 in 2010,up from $164,000 in the previous year.
Mittals other peers on the board Narayanan Vaghul,Wilbur L Ross,Lewis B Kaden,Francois Pinault,Antoine Spillmann and HRH Prince Guillaume also witnessed a hike in their base salaries in 2010.
According to the report,the total compensation paid in 2010 to members of the companys senior management,including L N Mittal in his capacity as CEO,was $17.8 million in base salary,including certain allowances paid in cash,such as allowances relating to car,petrol,lunch,financial services and balance settlements.
Furthermore,the company gave $7.2 million in short-term performance-related variable pay,consisting of a bonus linked to 2009 results that was paid partly in cash and partly as share-based compensation.
As of December 31,2010,about $1.8 million was accrued by the company to provide pension benefits to its senior management. The company,which was reeling under pressure because of slumping steel demand,decided to reduce the salaries of its board of directors by 12 per cent and 15 per cent in 2009 and 2008,respectively.
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